Correlation Between City National and Aqr Managed
Can any of the company-specific risk be diversified away by investing in both City National and Aqr Managed at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining City National and Aqr Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between City National Rochdale and Aqr Managed Futures, you can compare the effects of market volatilities on City National and Aqr Managed and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in City National with a short position of Aqr Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of City National and Aqr Managed.
Diversification Opportunities for City National and Aqr Managed
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between City and Aqr is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding City National Rochdale and Aqr Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Managed Futures and City National is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on City National Rochdale are associated (or correlated) with Aqr Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Managed Futures has no effect on the direction of City National i.e., City National and Aqr Managed go up and down completely randomly.
Pair Corralation between City National and Aqr Managed
Assuming the 90 days horizon City National Rochdale is expected to generate 0.07 times more return on investment than Aqr Managed. However, City National Rochdale is 15.28 times less risky than Aqr Managed. It trades about 0.89 of its potential returns per unit of risk. Aqr Managed Futures is currently generating about 0.04 per unit of risk. If you would invest 1,939 in City National Rochdale on November 5, 2024 and sell it today you would earn a total of 22.00 from holding City National Rochdale or generate 1.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
City National Rochdale vs. Aqr Managed Futures
Performance |
| Timeline |
| City National Rochdale |
| Aqr Managed Futures |
City National and Aqr Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with City National and Aqr Managed
The main advantage of trading using opposite City National and Aqr Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if City National position performs unexpectedly, Aqr Managed can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Aqr Managed will offset losses from the drop in Aqr Managed's long position.| City National vs. Ambrus Core Bond | City National vs. Mirova Global Green | City National vs. Massmutual Premier High | City National vs. Touchstone Ultra Short |
| Aqr Managed vs. Blackrock Large Cap | Aqr Managed vs. Qs Large Cap | Aqr Managed vs. Tax Managed Large Cap | Aqr Managed vs. Qs Large Cap |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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